New Tax Laws Amendment Bill Clears Path For Simpler Data Centre Incentive Regime
India’s push to become a global cloud and AI infrastructure hub received a boost after the Lok Sabha passed the…
The Lok Sabha recently passed the Taxation and Other Laws (Amendment) Bill, 2026, which simplifies India's data centre tax incentives by removing separate government approval requirements for eligible foreign companies and Indian data centres. This amendment also extends the benefit to leased facilities, reducing administrative hurdles for global cloud and technology firms operating through complex group structures.
The proposed changes focus on compliance with prescribed eligibility criteria rather than government approvals, making India a more attractive destination for cloud and AI infrastructure investment. Industry executives have welcomed the relaxations, stating that they reduce compliance burdens and improve India's attractiveness as a destination for cloud and AI infrastructure investments.
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